If you’re in the pharmaceutical industry and nearing retirement, you might be wondering: Will my savings last?
After years of planning and saving, it’s time to shift into the next phase: carefully drawing from your nest egg. But relying on a one-size-fits-all strategy can be risky, especially when markets fluctuate or unexpected costs come up.
In this quick video I walk through proven, sustainable withdrawal strategies designed to help you maintain financial stability in retirement.
Watch now!
Transcript
Preparing for Retirement in the Pharma Industry
If you work in the pharmaceutical industry and retirement is on the horizon, it’s natural to ask: Will my savings be enough? The wrong withdrawal approach can create financial pressure—especially during market swings or when unexpected expenses arise.
Hi, I’m Mike Gibbons, a financial advisor at Gibbons Financial Group. In this short video, I’ll highlight strategies for drawing down your assets in a consistent and thoughtful way—so you can move forward with greater financial clarity during retirement.
What the 4% Rule Means for Retirement Withdrawals
Let’s start with the well-known 4% rule. It’s often used as a general guideline for retirement income withdrawals. According to this approach, retirees withdraw about 4% of their initial retirement portfolio in the first year and adjust that amount in later years for inflation.
While it can be a useful starting point, the 4% rule has its limits. It doesn’t factor in all the variables that impact retirement—like longevity, market volatility, inflation, and personal circumstances. Relying on this rule alone can create challenges, especially for those with more complex retirement needs.
Beyond the Basics: Flexible Withdrawal Strategies
Rather than depending solely on the 4% rule, there are alternative withdrawal strategies designed to better reflect market performance and personal goals.
The Guardrails Method
This approach builds on the 4% rule by establishing thresholds—also known as guardrails—that trigger adjustments to withdrawal amounts based on how your portfolio performs over time.
Variable Percentage Withdrawal (VPW)
The VPW method determines your maximum annual withdrawal amount using your remaining life expectancy and your current portfolio balance. This allows for higher withdrawals during strong market years and more conservative ones during downturns.
Time Segmentation or Bucket Strategy
This strategy divides your retirement funds into different “buckets” based on time horizon and risk tolerance.
Short-term buckets hold liquid assets for immediate needs.
Intermediate buckets include more conservative investments for the next 5–10 years.
Long-term buckets contain growth-focused assets intended for use further into retirement.
Actuarial-Based Withdrawals
This strategy uses mortality tables and actuarial science to calculate withdrawals based on life expectancy. It involves more detailed planning and can offer options that adapt with time.
The Role of Tax Planning and Healthcare Costs
Withdrawal strategies must also consider the impact of taxes and medical expenses.
Proactive Tax Strategies
Taxes can significantly affect retirement income. Strategies like Roth IRA conversions, tax-efficient asset allocation, and managing required minimum distributions (RMDs) can help reduce potential tax burdens.
Planning for Healthcare Expenses
Healthcare often represents one of the largest and most unpredictable retirement costs—and it’s subject to the highest inflation rates. Contributions to health savings accounts (HSAs) and long-term care insurance can provide resources to help with those future needs.
Supporting Pharma Professionals with Tailored Retirement Planning
You've worked for years to build a strong financial foundation. Now, it’s time to consider how your assets can support you during retirement.
At Gibbons Financial Group, we work with professionals in the biopharma space to create withdrawal strategies aligned with their financial goals, lifestyle, and long-term considerations.
If you're interested in a complimentary consultation, contact us at:
📞 (224) 419-5550
📧 Mike@GibbonsFinancialGroup.com
Thank you for watching—we hope to speak with you soon.